Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, March 5, 1992 TAG: 9203050139
SECTION: BUSINESS PAGE: B9 EDITION: METRO
SOURCE: Associated Press
DATELINE: ABINGDON LENGTH: Medium
"There can be no doubt that the suspension of health benefits by the trustees, if not enjoined by this court, will lead to a costly and bitter strike," said Mark Lawson, an attorney for retirees who filed a class-action lawsuit last week.
U.S. District Judge Glen Williams on Wednesday extended his temporary order blocking the suspension of benefits to 120,000 retired miners and their dependents.
Williams said he will decide whether to issue a permanent order after a hearing March 16, but he stopped plans by the fund administrators to notify retirees of the suspension on March 13.
Williams also agreed to allow the United Mine Workers union to join the lawsuit as a plaintiff and the Bituminous Coal Operators Association to join as a defendant. The benefits plans' board of trustees, separate from the UMW, has both union and management representatives.
James Elliott, another attorney for the retirees, said inclusion of the UMW and the BCOA will help resolve the dilemma.
The 1950 and 1974 UMW funds have a $100 million deficit because of a drop in contributing companies in the BCOA.
The trustees have filed a lawsuit - scheduled for trial in June in Washington - that seeks to make BCOA members pay into the funds under a clause in the contract with the UMW. The BCOA represents 14 of the largest coal companies in negotiations with the union.
On Tuesday, the Senate Finance Committee passed legislation that would impose an industrywide tax to bail out the funds.
The UMW and BCOA support the bill sponsored by Sen. Jay Rockefeller, D-W.Va., but non-union coal companies and the Bush administration oppose it.
Rockefeller and UMW officials also have said a benefit suspension likely would lead to a coal strike.
Contributions to the trust funds have been based on the amount of coal mined by participating companies.
"Mass picketing and or walkouts over the health-care issue, ironically, would be disastrous to the trusts because they would be deprived of contributions on hours that would otherwise have been worked," Lawson said in court papers.
"Additionally, such walkouts are likely to be disastrous for many small employers faced with existing hardship in the depressed coal industry," he said.
A half-dozen retired coal miners who sat in the back of the courtroom said they were prepared to protest if benefits are suspended.
"We'll picket every mine in the country," said Dallas Hutchinson, 59, of Bristol.
The retirees said most of them still would be covered by Medicare. But they said those benefits don't cover the needs of people who suffer from black lung disease and other illnesses associated with coal mining.
by CNB